city of kawasaki · investor presentation october 2011. 1 contents ... activities of nano-micro...

Municipal Bond SubdivisionFinancial Affairs Department City of Kawasaki

City of KawasakiInvestor Presentation October 2011

1

Contents

ⅠⅠ Overview of KawasakiOverview of Kawasaki

ⅡⅡCharacteristics and Characteristics and Advantages of KawasakiAdvantages of Kawasaki

ⅢⅢ Financial Position of KawasakiFinancial Position of Kawasaki

ⅣⅣ Kawasaki City Bonds Kawasaki City Bonds

ⅤⅤ Reference dataReference data

Kawasaki City

Tokyo

Yokohama

Kawasaki

P.2

P.9

P.3

P.11

P.14川崎市長阿部孝夫

I am Takao Abe, Mayor of Kawasaki City.

Kawasaki City has developed amid the rich natural resources provided by the Tama River. As the core of the Keihin IndustrialZone, the city supported Japan’s rapid economic growth in the 1960s and 70s. Now, it is home to numerous research organizations and companies specializing in environmental issues, life sciences and other leading science and technology fields. It is transforming into one of the world’s top technology and science centers.

The city also boasts abundant nature such as the Tama River and the Tama hills, where citizens often relax and connect with one another. In the areas of culture, the arts, and sports, Kawasaki City attracts countless musicians, performers, artists and athletes to our conservatories, bands, choirs, film schools, and sports teams, many of which are very active both in and outside of Japan. Using these strengths and characteristics, Kawasaki City promotes the development of itself as a “city of music,” a “city of film,” and a “city of sport.”

As the three main pillars of local government administration, we have been promoting “decisive action on fiscal reform,” “concrete promotion of comprehensive planning,” and “resident-led city development through basic local government ordinances.” We will be implementing measures to make residents feel glad they live in Kawasaki.

To realize these goals, we are making efforts to (1) realize a “human city” that nurtures respect for life and gets people to support each other in areas like medical care, welfare, child-rearing, education (2) ensure a “safe and comfortable city” that provides safety, a sense of safety, and comfort in residents’ daily lives and living environment (3) contribute to the global community and make a sustainable “lively city” by promoting measures against global warming and supporting the welfare industries and R&D in fields related to the environment and life sciences (4) create a “stability sustaining city” that makes efforts to support small- and medium-sized enterprises, promote traditional shopping arcades and agriculture, and secure jobs (5) create an attractive, “unique metropolitan city” by utilizing strengths and characteristics such as local resources.

We hope to make “yet another leap” with an eye to becoming one of Japan’s liveliest and most attractive cities, and will do our best to achieve these goals. I would greatly appreciate your understanding and support for the Kawasaki City Government.

2

Kawasaki JapanHouseholds 666,906 （08/01/2011） 50,920,000（10/01/2010）Area 144.35 km2 377,929.99 km2

GDP50.4billion dollars（5.2trillion yen）（FY2008）

4.89trillion dollars（492trillion yen）（FY2008）

Major industries

Manufacturing (steel, electronics, telecommunications, precisionmachinery, petrochemical) information and service

Developing industries

New manufacturing technologies, information and telecommunications, environment, welfare and life sciences,

life cultureForeign people

31,794（2.2%）（06/30/2011）

2,217,426（1.7%）（12/31/2010）

Foreign firms

115(83 headquarters：5th in Japan) 3,500

Ⅰ. Overview of KawasakiKawasaki Japan

Population 1,430,579（08/01/2011）

127,920,000（08/01/2011）

Population growth rate

1.14%（FY2009→FY2010）

△0.82% （FY2009→FY2010）

Average age 41.5（10/01/2010）

44.9（10/01/2010）

Labor force 6,600,000（46.2%）（FY2010）

62,410,000（48.7%）（FY2010）

Population GDP（thousands）

10,032

6,978

4,839

1,327

11,510

0 2,000 4,000 6,000 8,000 10,000 12,000

Beijing

Seoul

Hong Kong

Singapore

Kawasaki

※Statistical Handbook of World 2011, Ministry of Internal Affairs and Communications

※FY2008

（billion dollars）

166

291

320

215

50

0 50 100 150 200 250 300 350

Beijing

Seoul

Hong Kong

Singapore

Kawasaki

3

Ⅱ. Characteristics and Advantages of Kawasaki

Famous city for “art and culture”4

Convenient access1

Top city for “industry and R&D”2

Protecting the environment3

P.4

P.5

P.7

P.8

Kawasaki City

Tokyo

Yokohama

Kawasaki

4

Potential 1. Convenient access

Kawasaki ⇔ Narita 90minKawasaki ⇔ Haneda 15min

Hanedaairport

Kawasaki

Yokohama

Tokyo Narita airport

Kawasakiport

Convenient access to airports

Lots of railways and roads

Extension and internationalization of Haneda(from 10/21/2010)

90 minutes to Narita, 15 minutes to Haneda

18 minutes to Tokyo, 10minutes to Yokohama (via railways)

Increase of capacity (1.4 times larger than now)Expand close-range Asian business air routes Go into service to European major cities by 24-hour operationExpansion of international freightPlan for Kanagawa gate(making a gate from the airport on the opposite side of the airport (Kawasaki side) to create a new exchange base)

Kanagawa gateHaneda airport

KawasakiTokyoNow（2005/10/01～）30 flights in an hour

296,000 flights in a year《405 flights in a day》

After expansion40 flights in an hour

407,000 flights in a year《557 flights in a day》

Increase of capacity（1.4 times larger than now）by expansion《111,000 flights in a year（152 flights in a day》

New runway 2,500m

Tokyo bay

Haneda airportHaneda airport

source : Haneda Airport Expansion Project JV

5

Potential 2. Top city for “industry and R&D”

Global companies and major R&D institutions2 - 1

Science park and R&D industrial housing

AJINOMOTO

（office、 research institute）（factory、 research institute ）

ZEON CORPORATION

ASAHI KASEI

（R&D center）

Nippon Yakin Kogyo

KAO

（factory）

TONEN GENERALSEKIYU

（factory、 central research institute）

TOKYO ELECTRIC POWER COMPANY

JFE STEEL

（ironwork）

JX Nippon Oil & Energy

（office、factory）

SHOWA DENKO

（office、R&D center）

TOKYO GAS

Canon

office

NISSHIN SEIFUN

（factory）

DellPioneer

（head office）

（head office）

TOSHIBA

（R&D center）

NEC

（office、central research institute）

FUJITSU

（head office、factory）

HITACHI

（office、research institute）

SUNTORY（product development center）

Kanagawa gate area

KSPmicon city

Shin Kawasaki science park

THINK

MITSUBISHIFUSO TRUCK&BUS

6

Potential 2. Top city for “industry and R&D”

Joint Research Center of Regeneration Medicine･New

Drug Development(Joint project with Keio Univ. etc)

Operated from July 2011

Formation of international contention basis in life science ･ environmental area

Kanagawa Science Park (KSP) http://www.ksp.or.jp/

《Collaboration between academia and industry》Activities of nano-micro fabrication consortium of four universities ( Tokyo, Keio, Waseda, Tokyo Institute of Technology)The Kawasaki Business Incubation Center (KBIC)

Keio University Shin Kawasaki Town Campus (K2)

《Led by private organization》Home to 16 firms (August 2011)

Shin-Kawasaki Science Park (KBIC、K2) http://www.kawasaki-net.ne.jp/kbic/ http://www.k2.keio.ac.jp/

Techno Hub Innovation Kawasaki (THINK) http://www.techno-hub-innovation.com/

The first (in1989) and one of the largest science park in JapanHome to 128 firms (August 2011)

Three Science Parks Contributing to Create New Industry - Only Kawasaki has 3 basis in a city -2 - 2

Approach of General specific district of international strategy focused on Kanagawa gate2 - 3

Maintenance of Joint Research Center of Regeneration Medicine ･ New Drug Development

Implementation of research for practical realization of regeneration medicine technology～ Only technology to lead the world from Japan(developmentof medical treatment such as spinal cord injury using iPS cells)Implementation of medical treatment and drug development for overall ataxia etc. by using the world’s only genetically-modified marmoset

Maintenance of Radiation Cancer Treatment Center for Shared UseMaintenance of Institute of Public Health (tentative name)Maintenance of R&D Basis Facilities for Drug Medicine Maintenance of R&D Basis Facilities for Analytical Equipment etc.Maintenance of Environmental Research InstituteMaintenance of Nano-micro Industry-academic-government Joint R&D Basis FacilitiesEstablishment promotion of High-value-added Companies

→ R&D basis formation of advanced science and technology with accumulations of companies in future-oriented industries

→ Home to 22 firms and 8 university research projects(August 2011)

→ Home to 13 university research projects(August 2011)

7

Promotion of environment measures making use of characteristics and advantages of Kawasaki

Promotion of international contribution through environmental technology・UNEP cooperation project ・Kawasaki International ECO-Tech Fair

Promotion of CO2 reductions by collaboration among various entities

Potential 3. Protecting the EnvironmentExperience in overcoming industrial pollution3 - 1 Carbon・challenge Kawasaki eco strategy (CC Kawasaki)3 - 2

Ⅰ

Ⅱ

Ⅲ

Air condition has been improved by various measures.

Significant improvement by measures taken together by firms, citizen and administration

Sky of Kawasaki (1967)

Sky of Kawasaki (now)

The city was covered by smoke emitted from factories along the sea.

Built one of the largest mega-solar power plants in waterfront areas in collaboration with private company- Uki Island (Operated in August 2011)- Oogi Island (To be operated in December 2011)

Capacity 20,000kW (cover 5,900 households needs)

Source：electromobile research group of Keio university

recycling factory producing resin for pet bottle by using old pet bottle「PET REFINE TECHNOLOGY」

Electromobile developed at K2 town campus「Eliica」 → able to run 100 km by electricity bill of about 1 dollar

China’s Paramount Leader Hu JintaoVisited JFE Group

Paramount LeaderHu Jintao

Mr. Abe, mayor of Kawasaki

Mega Solor (Uki Island)

8

Potential 4. Famous city for “art and culture”Kawasaki : City of music

Vienna Philharmonic Orchestra（11/2010 perform）

MUZA KAWASAKI SYMPHONY HALL(right)MUZA KAWASAKI CENTRAL TOWER(left)

Fujiko・F・Fujio Museum(09/2011 open)

KAWASAKI MUTON

©Fujiko-Pro

9

Financial index (FY2011) 1.041

Ⅲ. Financial Position of Kawasaki

Financial index

0.691

0.852

0.995

0.695

0.857

0.754

0.912

0.8290.804

0.689

0.835

0.7420.734

0.9840.984

0.900

1.0131.041

0.969

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

札幌市

仙台市

さいたま市

千葉市

川崎市

横浜市

相模原市

新潟市

静岡市

浜松市

名古屋市

京都市

大阪市

堺市神戸市

岡山市

広島市

北九州市

福岡市

46.4%40.1%

6.9%

18.5% 19.9%

12.0% 12.0%

22.5% 21.1%

0.6%

0%

25%

50%

75%

100%

川崎市政令指定都市平均

Ratio of independent source of revenue (general account)

Ratio of independent source of revenue 65.2%

* Comparison of cities designated by government ordinance based on settlement of accounts (FY2010)

Kawasaki cities designated by government ordinance

local tax tax from nationrevenue from nation and prefectures

municipal bond

others

strong tax revenue base

Sapporo

Sendai

Saitam

a

Chiba

Kaw

asaki

Yokoham

a

Niigata

Shizuoka

Ham

amatsu

Nagoya

Kyoto

Osaka

Sakai

Kobe

Hiroshim

a

Kitakyushu

Fukuoka

(％)

Okayam

a

* Average score between FY2009～FY2011* Calculated by Kawasaki based on public data of each city

1st

Sagam

ihara

10

*Initial budget (FY2011)

Ⅲ. Financial Position of Kawasaki

State of tax revenueHigh percentage of individual tax

39.1% 33.4%

6.1%9.8%

40.5%

14.3% 15.3%

39.3%

0%

25%

50%

75%

100%

川崎市政令指定都市平均

個人市民税法人市民税

固定資産税その他

860 843 8901,117 1,165 1,172 1,103 1,089

187 213 247294

321 280 153 170 171

1,100 1,0961,096

1,0491,067 1,097

1,130 1,143 1,139

404 396395 388

392 396397 404 398

972

2,7962,8202,8522,9382,8972,7032,628

2,5482,551

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2003 2004 2005 2006 2007 2008 2009 2010 2011

個人市民税法人市民税固定資産税その他

Analysis of Tax Revenue Structure

Kawasaki cities designated by government ordinance

Individual tax Corporate municipal tax

OthersFixed asset tax

* Comparison of cities designated by government ordinance based on settlement of accounts (FY2010)

(100 million yen)

Individual tax Corporate tax Fixed asset tax Others

11

Issuances of mid-term(1/3), long-term(1/3), super long-term(1/3) to reduce interest-rate risk etcBootstrap finance The ratio of private funds：public funds is 9：1

Of 183.4 billion yen of all accounts, private funds are 161.9 billion yen (88%)The amount of public offering bonds is 110 billion yen (60%), and the amount of Kawasaki individual bonds is 80 billion yen (44%)The amount of private placement bonds is 51.9 billion yen (28%)

IV. Kawasaki City Bonds

FY2011 Kawasaki Bond Issue Plan

Category Term (year) Sum

2011 20124 5 6 7 8 9 10 11 12 1 2 3 Spot TBD

public offering bond

individual bond

Public

Offering

bond

5 30 10 10 1010 10 10

Super long 30 10 10 10Flex 10 10

Joint local government

bond10 30 5 5 5 5 5 5

Subtotal 110

private placem

ent bond

Securities issueor

Certificate issue

5 21 4 1710 20.8 7 6.8 7

Super long 10 10Subtotal 51.9

public funds 21.5 Total 183.4

（billion yen）

12

20 2030 32

3742

3732 35 35

30 30

3035

25

40

45

5555

4545

55

40 40

15

20

10

10

2020

30

3020

10

1010

10

10

0

20

40

60

80

100

120

140

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

5年債 10年債 15年債 20年債 30年債フレックス

(billion)

JGBGovernment Guaranteed

Bonds

Kawasaki City Bonds

Fiscal investment and loan bonds

Electric utility bonds

0% 0% 0% 10% 20%

In accordance with the amendment to the Act on Special Measures Concerning Taxation Article 5-2, a nonresident or a foreign corporation who satisfy the specific requirements may receive interest on book-entry transfer local government bonds paid on January 1, 2008 and thereafter exempted from income tax.

Starting from June 2010, tax-exemption procedures for the interest payments on book-entry transfer local government bonds received by nonresidents, etc., has been simplified and the scope of tax-exempt qualified person has been widened.

Tax Exemption Scheme ( J - BIEM )

http://www.chihousai.or.jp/english/08/index.html

IV. Kawasaki City Bonds

Total amounts of Kawasaki City’spublic offering bonds Issued Risk Weights under BIS Standard

Tax-Exempt Measures for Non-Residents

● For further details, please visit the website of Japan Local Government Bond Association:

Kawasaki City Bonds: Liquidity and Safety

5-year bond

10-year bond

15-year bond

20-year bond

30-year bond Flex

13

Please visit our website for bond issue plan and track records.

http://www.city.kawasaki.jp/23/23sikin/home/ir/english/index.html3

IV. Kawasaki City BondsKawasaki City Investor Relations WebsiteBond Outstanding vs GDP

Bond Outstanding vs GDP is 28.8% (FY2008)

* Bond Outstanding includes all accounts

（JPY100 mm）

458 467 461 481 503 515 521

146 152 152 152 150 149 150

32.0%32.4%

33.1%

31.6%

29.9% 28.9

% 28.8%

26%

27%

28%

29%

30%

31%

32%

33%

34%

0

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006 2007 2008GDP (1) Bond Outstanding (2) (2)/(1)

14

International Eco-Tech Fair & Forum on Intellectual PropertyWater Resources Project with AustraliaInternationally Competing Facility of Life Science and Environment in KING SLYFRONTIPPs in Waterfront area

Analysis of Annual Expense StructurePrimary BalanceIndices on Soundness of Local Public FinanceOrdinary Account Balance Sheet of Kawasaki CityComprehensive Balance Sheet of Kawasaki CityConsolidated Balance Sheet including Affiliated EntitiesAdministrative Cost Statement

V. Appendix

International Contribution with World-Class Technologies1

Financial Data2

P.15

P.19

15

*Next exhibition will be held in February 2012.

1. International Contribution with World-Class Technologies

International Eco-Tech Fair & Forum on Intellectual Property

Asian Forum on Intellectual Property

Environmental professionals gatheredInternational business-matching opportunity

Kawasaki International Eco-Tech Fair 2011

KAWASAKI

2011/2/16-17 @Kawasaki

Participants 118 groups219 booths

No. of visitors 12,500

Mr. Abe, mayor of Kawasaki

16

Water Resources Project with Australia, State of Queensland


メガソーラー（浮島）

Strength of the System and Water & Energy Saving effect

Delegate Co-work

July 2009Project Start

FY2014Commercialization

Water Saving40%+

Energy Saving30%+

Rainwater (Roof)

Water storage

tank

Membrane filtration

Ultraviolet disinfection

Drinking waterRainwater (Road)

Membrane process

Sprinkling / flushing water

Toilet water Sewer water

Using Rainwater

Lowering water delivery power

17

Internationally Competing Facility of Life Science and Environment in KING SLYFRONT

☆Advanced medical development, ‘Regenerative medicine’☆Innovative new medicine☆New medical instrument

Basis agreement of promoting advanced medical development

(2009/4/23)

(From left)Tatsuji Nomura, President of Central institute for Experimental AnimalsTakao Abe, Mayor of Kawasaki CityHideyuki Okano, Medical Professor of Keio University “Nature” 2009/5/28

■Kawasaki Innovation Gateway at SKYFRONT (Tono-machi area)

Operation start in July 2011Pioneering research institute in Tono-machi area

Central institute for Experimental AnimalsJoint Research Center of Regeneration Medicine & New Drug Development

<1st stage>

Haneda AirportInternational Terminal

Tono-machi area

Attracting research institutes and corporations by supporting international competition

<2nd stage>Industry-Government-

Academia-Citizen Joint Research Center

(tentative name)

Groundbreaking in December 2011Operation start in January 2013

☆ Environmental Research Institute Tokyo, Health and Safety Research Center (tentative name) will move into☆Attracting other research institutes


18


IPPs in Waterfront area ~Advanced Technology IPPs of Solar, Wind Power, LNG etc~

6 Ohgi-shimaWind Power Generation

[Operator] JX Nippon oil & Energy[Source] Wind

1 Kawasaki Biomass

[Source] Woody Biomass

7 Higashi-ohgi-shimaThermal Power Generation

[Operator] Tokyo EPC[Source] Thermal(LNG)

2 Kawasaki Natural Gas Power Generation

[Source] Thermal(LNG)

4 JR East (Kawasaki)

[Source] Thermal

(Kerosene, LNG etc)

3 Showa Denko (Kawasaki)

[Source] Thermal

14 Uki-shima Disposal Center[Operator] Kawasaki City[Source] Thermal (waste)

13 Uki-shima Solar Power Generation[Area] 10ha[Operator] Tokyo EPC, Kawasaki City[Start Date] August 2011[Source] Solar

11 GENEX (Mizue)[Source] Thermal(byproduct gas, heavy oil, etc)

8 ELIIY Power (Kawasaki)Manufacturing large storage battery

5 Ohgi-shima Solar Power Generation[Capacity] 13,000kW[Operator] Tokyo EPC, Kawasaki City[Start Date(plan)] December 2011[Source] Solar

Ukishima-cho

Haneda Airport

Chidori-cho

Higashi-ohgiIsland

Mizue-choOhgi-machi

Ohgi island

Ohkawa-cho

Shiraishi-cho

Tono-machi

Kojima-cho 12 Kawasaki Thermal Power Generation[Operator] Tokyo EPC[Source] Thermal (LNG)*Kawasaki Steam Net: Delivering by-produced steams to 10 companies nearby

10 Kawasaki Clean Power Generation[Operator] Marubeni[Source] Thermal (LNG)

5.46mm kW of power generation capacity of Kawasaki waterfront area covers 80% of 6.3 mm kW of household needs in Tokyo, Kanagawa, Chiba and Saitama

* Assuming all the facilities generate maximum electricity, # of household is 15.75mm, 1 household needs 0.4kWh

Keihin Port

9 Kawasaki Thermal Power Generation (urgent treatment)[Capacity] 128,000kW[Operator] Tokyo EPC[Start Date] August 2011[Source] Thermal (LNG)

Capacity (10,000kW)# Current Final1 3.3 3.32 84.7 84.73 12.4 12.44 63.6 63.65 - 1.36 0.2 0.27 200.0 200.09 - 12.710 3.4 3.411 27.4 27.412 150.0 342.013 - 0.714 1.2 1.2

Total 546.0 752.8

19

2. Financial DataAnalysis of Expenditure Structure (general account)

12.5%16.5% 17.6% 16.4% 13.9%

19.3%15.6% 17.5% 16.9% 16.8% 15.5% 14.6% 16.8% 16.1% 17.9%

14.5% 13.4%10.2%

26.8% 19.5%20.7%

20.1%21.5%

23.5%

24.3%

17.3%17.5% 18.9% 21.6% 22.3%

29.3%30.6%

21.2%

25.0%

24.1%21.0%

21.4%

12.0%15.4% 10.3% 16.5% 12.5% 13.3%

8.8%

10.2%

14.4% 13.1% 10.6%

13.5% 9.3%

16.7%

15.0%

12.5%

13.3%14.7%

15.6%

14.1%

0%

10%

20%

30%

40%

50%

60%

70%

Sapporo

Sendai

Saitam

a

Chiba

Kaw

asaki

Yokoham

a

Sagam

ihara

Niigata

Shizuoka

Ham

amatsu

Nagoya

Kyoto

Osaka

Sakai

Kobe

Okayam

a

Hiroshim

a

Kita-kyushu

Fukuoka

Personal expenses Aid allowance Bond cost

Ratio of personnel expenses 11/19Ratio of aid allowance 10/19Ratio of bond cost 7/19Ratio of obligatory expense 8/19

*Cities designated by government ordinance (FY2009)

51.3% 51.4%48.6%

52.2% 50.4% 50.7% 52.5%

43.1%

49.5%52.5%

48.4%

57.5% 56.7%54.0%

57.9%

51.2%47.7% 46.4%

48.9%

20

4,744

5,414.45,3445,185

4,543

5,447

4,6144,459

4,7464,5744,793

5,4145,137 5,261

4,6284,417

4,533

5,062

4,4874,433

0.4

441

310

83

306313157

-79

-448

-85

0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-600

-400

-200

0

200

400

600

Revenue ex. Bond issue Expenditure ex. Bond cost Primary balance (right axis)※ initial budget（2011）

2. Financial Data

Positive scores since FY2005

[Ｇeneral accounts Basic financial revenues and expenditures ]

Primary Balance

(100 million yen)(100 million yen)

21

2. Financial Data

Fiscal Health Assessment FY2010 FY2009 The early financial soundness criterion

The financial RebuildingCriterion

①Real deficit ratio －% －% 11.25% 20.00%

②Consolidated real deficit ratio －% －% 16.25% 40.00%

③Real debt service ratio 11.9% 13.4% 25.0% 35.0%

④Future burden ratio 120.0% 137.4% 400.0%

Capital shortfall ratio FY2009 FY2008 Management StabilizingStandard

⑤Financial shortfall ratio（6Public enterprise account）

All public enterpriseshave no capital shortfall.

All public enterpriseshave no capital shortfall.

20%

Kawasaki City does not have any real deficits in general or public project accounts.Fiscal conditions are sound, as it is within Real debt service ratio and Future burden ratio under The early financial soundness criterion.

The Local Government Financial Soundness Law stipulates that the following ratios are used to gauge the fiscal health of local(1) Real deficit ratio (2) Consolidated real deficit ratio (3) Real debt service ratio (4) Future burden ratioAlso, the (5) Financial shortfall ratio was established for assessing fiscal health of public enterprises.The local government must draft a financial health improvement plan if any ratios exceed The early financial soundness criterionand a financial recovery plan must be drafted if any ratios exceed Financial Rebuilding Criterion.

State of the Ratio for Determining Soundness and the Financial Shortfall Ratio

22

The ratio of real deficit in all accounts (ordinary accounts and public project accounts) to standard financial scale in all accounts.

Ratio of general account real deficit to standard financial scale in general account.

Real deficit ratio ＝real deficit of general account, etc.

standard financial scale

Consolidated real deficit ratio ＝Real deficit in ordinary accounts＋Real deficit in public project account

standard financial scale

Ordinary account real deficit：Kawasaki City has a 1.3bn yen surplus in ordinary account.Public enterprise account real deficit：No capital shortfalls in public enterprise accounts.

Real deficit ratio1

Consolidated real deficit ratio2

Does not apply, as Kawasaki City has general account and public project account surplus.

Does not apply, as Kawasaki City has a 1.3bn yen surplus.

The early financial soundness criterion

11.25%

The financial RebuildingCriterion

20.00%


16.25%The financial Rebuilding

Criterion

40.00%

Standard financial scale：Standard projected revenue (projected total of city tax, local transfer tax, ordinary allocation tax, temporary fiscal measure bonds, local special allocation, traffic safety measure allocations)

FY2010 ：291.4bn yen

2. Financial Data


23

Real debt service ratio3

Real debt service ratio is below The early financial soundness criterion of 25.0%

Ratio of Real debt service in general accounts to standard financial scale（average of last three years）

Kawasaki City The early financial soundness criterion

The financial RebuildingCriterion2010 2009

11.9% 13.4% 25.0% 35.0%

A： Redemption of principal and interest of local bondsB： Based on local bond redemption funds (expenditures from general account for public enterprise redemption funds,

construction costs redemption funds for mutual aid association, etc.)C： Special resources for principal, interest repayment sourceD： Amount included in standard financial requirements pertaining to redemption of principal and interest and quasi-

redemption of principal and interest)E： Standard financial scale

Real debt service ratio ＝（A＋B）－（C＋D）

E－D3-year average

2. Financial Data


24

Future burden ratio＝A－BC－D

A： Future burden amountCurrent balance of general account local govt bondsPlanned expenditures based on debt payments (excl joint bonds, etc.)Estimated rollover from ordinary account for public enterprise operationsNecessary retirement funds assuming all workers retire voluntarilyFunds for public enterprises Payments for indemnity contract holders

B：Resources that can be used for future burden ratioAmount of appropriable fundsEstimated amount of special revenue sourcesAmount expected to be included in standard financialrequirements pertaining to outstanding local government bonds, etc

C： Standard financial scaleD： Amount included in standard financial requirements

pertaining to redemption of principal and interest and quasi-redemption of principal and interest redemption

Future burden ratio is below The early financial soundness criterion of 400.0%

Kawasaki City The early financial soundness criterion2010 2009

120.0% 137.4% 400.0%

Ratio of real burden to be borne in future by ordinary accounts (incl public enterprises) to standard financial scale.


Future burden ratio4

2. Financial Data

25

＝

No Kawasaki City public enterprises reported deficits under public enterprise accounting.


20.0 %

Ratio of capital shortage to business scale of each public enterprise

Public enterprise accounting of Kawasaki City

Hospital accountingSewage business accountingWater business accounting

Industrial water works business accountingVehicle transport business accountingRapid-transit railway business accounting

Wholesale market business special accountingPort improvement enterprise special accounting Ikuta Ryokuchi Golf Course business special accounting

Capital Shortage Ratio5

Financial Shortfall Ratiodeficit of funds

size of business

2. Financial Data


26

Category FY2005 FY2006 FY2007

1. Tangible fixed assets 19,272 19,460 19,624

2. Investments 1,967 2,008 2,104

3. Current assets 371 276 298

Total assets 21,610 21,744 22,026

1. Fixed liabilities 9,051 8,887 8,486

(of which local government bonds) 8,259 8,119 7,763

2. Current liabilities 561 579 870

Total liabilities 9,612 9,466 9,356

1. National treasury disbursement 2,360 2,373 2,416

2. Prefectural government treasury disbursement

243 238 233

3. General fund, etc. 9,395 9,667 10,021

Total net assets 11,998 12,278 12,670

Net assets to total assets ratio (%) 55.5 56.5 57.5

The Ministry of Internal Affairs and Communications (MIC) Method Amended MIC Method Model

Category FY2007 FY2008 FY2009 Increase (Decrease)

Change (%)

1. Public assets 43,073 43,439 43,640 201 0

2. Investments 2,210 1,990 2,023 33 2

3. Current assets 799 1,235 1,188 △ 47 △ 4

Total assets 46,081 46,664 46,851 187 0

1. Fixed liabilities 9,110 9,201 9,392 191 2

(of which local government bonds) 8,160 8,322 8,542 220 3

2. Current liabilities 1,301 1,309 954 △ 355 △ 27

Total liabilities 10,411 10,510 10,346 △ 164 △ 2 1. National and

prefectural subsidies for public assets improvement

2,822 2,858 2,917 59 2

2. General revenue of public assets improvement

35,746 35,768 36,193 425 1

3. Other general revenue, etc. △ 2,904 △ 2,501 △ 2,691 △ 190 8

4. Revaluation difference of assets 6 29 86 57 197

Total net assets 35,670 36,154 36,505 351 1

Net assets to total assets ratio (%) 77.4 77.5 77.9 0.4 －

(100 million yen, %) (100 million yen, %)

Ordinary Account Balance Sheet of Kawasaki City (5 years)

Asse

tsLi

abilit

ies

Net

ass

ets

Inde

x

Asse

tsLi

abilit

ies

Net

ass

ets

Inde

x

2. Financial Data

27

Category Ordinary account

Special accounts

Public enterprise account

Simple total

Combined total Category Ordinary

accountSpecial

accountsPublic

enterprise account

Simple total

Combined total

1. Public assets 43,640 1,218 10,479 55,337 55,337 1. Fixed liabilities 9,392 173 5,008 14,573 14,573

Tangible fixed assets 43,547 1,218 10,430 55,195 55,195 Local public entities 8,542 172 4,871 13,585 13,585

Intangible assets 0 0 49 49 49 Affiliated entities 0 0 0 0 0

Saleable assets 93 0 0 93 93 Long-term accounts payable 63 0 0 63 63

2. Investments, etc. 2,023 259 207 2,489 1,561 Allowances 787 1 137 925 925 Investment and equity balance 1,413 0 116 1,529 601 Other 0 0 0 0 0

Loans receivable 193 37 0 230 230 2. Current liabilities 954 15 739 1,708 1,667

Funds, etc. 321 150 1 472 472Amount to be redeemed in the next fiscal year

764 12 454 1,230 1,230

Long-term delinquent loans 112 90 5 207 207 Short-term

borrowings 0 0 0 0 0

Other 0 0 86 86 86 Accounts payable 4 0 225 229 188

Non-recoverable amounts 16 18 1 35 35

Retirement benefits payable in the next fiscal year

123 1 22 146 146

3. Current assets 1,188 64 508 1,760 1,719 Allowance for bonus 63 2 15 80 80

Funds 137 18 331 486 464 Other 0 0 23 23 23

Accounts receivable 51 56 150 257 238 Total liabilities 10,346 188 5,747 16,281 16,240

Real estate for sale 0 0 0 0 0 Total net assets 36,505 1,353 5,447 43,305 42,377

Other 1,004 0 28 1,032 1,032 Total liabilities and net assets 46,851 1,541 11,194 59,586 58,617 Non-recoverable amounts 4 10 1 15 15

4. Deferred accounts 0 0 0 0 0

Total assets 46,851 1,541 11,194 59,586 58,617


Comprehensive Balance Sheet of Kawasaki City (as of March 31, 2010)

Asse

ts Liab

ilitie

s

2. Financial Data

28

Category Ordinary account

Special accounts


Third Sectors, etc.

Simple total

Combined total Category Ordinary

accountSpecial

accounts


Third Sectors,

etc.

Simple total

Combined total

1. Public assets 43,640 1,218 10,479 1,062 56,399 56,399 1. Fixed liabilities 9,392 173 5,008 1,043 15,616 15,547Tangible fixed assets 43,547 1,218 10,430 834 56,029 56,029 Local public entities 8,542 172 4,871 3 13,588 13,589

Intangible assets 0 0 49 228 277 277 Affiliated entities 0 0 0 658 658 588

Saleable assets 93 0 0 0 93 93 Long-term accounts payable 63 0 0 185 248 248

2. Investments, etc. 2,023 259 207 382 2,871 1,805 Allowances 787 1 137 17 942 942Investment and equity balance 1,413 0 116 36 1,565 575 Other 0 0 0 180 180 180

Loans receivable 193 37 0 205 435 359 2. Current liabilities 954 15 739 213 1,921 1,870

Funds, etc. 321 150 1 10 482 482 Amount to be redeemedin the next fiscal year 764 12 454 49 1,279 1,272

Long-term delinquent loans 112 90 5 0 207 207 Short-term borrowings 0 0 0 115 115 115

Other 0 0 86 134 220 220 Accounts payable 4 0 225 28 257 213

Non-recoverable amounts 16 18 1 3 38 38

Retirement benefits payable in the next fiscal year

123 1 22 2 148 148

3. Current assets 1,188 64 508 159 1,919 1,875 Allowance for bonus 63 2 15 1 81 81

Funds 137 18 331 135 621 600 Other 0 0 23 18 41 41Accounts receivable 51 56 150 13 270 247 Total liabilities 10,346 188 5,747 1,256 17,537 17,417Real estate for sale 0 0 0 0 0 0 Total net assets 36,505 1,353 5,447 347 43,652 42,662

Other 1,004 0 28 12 1,044 1,044 Total liabilities and net assets 46,851 1,541 11,194 1,603 61,189 60,079Non-recoverable amounts 4 10 1 1 16 16

4. Deferredaccounts 0 0 0 0 0

Total assets 46,851 1,541 11,194 1,603 61,189 60,079


Balance Sheets Consolidated with Affiliated Entities (as of March 31, 2010)

Ass

ets Li

abilit

ies

2. Financial Data

29

Administrative Cost Statement (Ordinary Account)

[Administrative Cost] [Ordinary Revenue]

Item/Fiscal yearFY2008 FY2009

Item/Fiscal YearFY2008 FY2009

Amount % Amount % Amount % Amount %

Cost on personnel

(1) Personnel cost 870 22.0 857 19.6 1. Usage charge, commissions (B) 195 79.2 192 78.0

(2) Provision of allowance for retirement benefits, etc. 87 2.2 96 2.2 B/A 4.9% 4.4%

(3) Provision of allowance for bonus 63 1.6 63 1.4 2. Shares, contribution, donations (C) 51 20.8 54 22.0

Subtotal 1,020 25.7 1,016 23.2 C/A 1.3% 1.2%

Cost on equipment

(1) General expenses 524 13.2 564 12.9 Total ordinary revenue (B+C) 246 100.0 246 100.0

(2) Cost of maintenance and repairs 63 1.6 63 1.4 (3) Depreciation 439 11.1 448 10.3 Subtotal 1,026 25.9 1,075 24.6

Cost on transfer

expenditure

(1) Social security benefit payments 936 23.6 1,029 23.6 (2) Subsidies, etc. 192 4.9 426 9.8 (3) Expenditure to other accounts, etc. 550 13.9 552 12.6 (4) Public asset improvement subsidy to

other entities, etc. 79 2.0 96 2.2

Subtotal 1,756 44.3 2,103 48.2

Other costs

(1) Interest paid 150 3.8 156 3.6 (2) Non-recoverable amounts 11 0.3 17 0.4 (3) Other administrative cost 0 0.0 0 0.0 Subtotal 161 4.1 173 4.0

Ordinary administrative cost (A) 3,963 100.0 4,367 100.0

(100 million yen, %)(100 million yen, %)

Amended MIC Method Model

2. Financial Data

30

City of Kawasaki

1, Miyamoto-cho, Kawasaki-ku, Kawasaki-shi, 210-8577Address

E-mail

HP

[email protected]

http://www.city.kawasaki.jp/23/23sikin/home/ir/ir.htm

The purpose of this material is to explain the financial conditions of City of Kawasaki to investors who are considering the purchase of Kawasaki municipal bonds. The intent is not to sell a particular bond or to solicit buyers.

City of Kawasaki

Address: 1, Miyamoto-cho, Kawasaki-ku, Kawasaki-shi, 210-8577 E-mail: [email protected]

http://www.city.kawasaki.jp/23/23sikin/home/ir/ir.htm

city of kawasaki · investor presentation october 2011. 1 contents ... activities of nano-micro...

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